Several Retailers to Begin Testing Apple Pay Rival CurrentC

[EvilEvil]

Like Applepay I'm sticking to my debit/credit cards.

 

[Andres Cantu]

I think the birth and launch of CurrentC is one of those rare events where literally everyone reached the consensus that it should fail. I don't recall any other event similar to this one.

We'll see how things go for them in this trial period, though I'm sure it won't be pretty!

 

[Gasu E.]

UK Card fees to be capped in December

That's either going to hurt Amex pretty bad... or encourage more retailers to accept Amex.

If they really are capping total credit card fees at .3% (vs. .2% for debit cards), that means credit card companies will lose big time on prompt payers. Credit card companies provide a short term loan (the time between the transaction and the monthly bill) as well as incur some elements of risk-- that the card user won't pay, or that the charge will be fraudulent. Assuming the "loan" is for 15 days on average, and that .2% covers just the handling costs (as with debit cards), the remaining .1% results in an effective annual interest rate capped at about 2.4%. That's pretty ridiculous, especially as it's statutory and can't rise with inflation. Expect a huge cutback in credit card reward points, free fraud protection, and any other benefits you get from using a credit card. Sorry, UK.

 

[2457282]

Before Apple Pay, this CurrentC kind of made sense. Starbucks has been successful with their own implementation for a while. But after the credit card companies started requiring Chip and Pins (that oh by the way also brought NFC) machines, this no longer makes sense. They have to try this since they spent 3 years on it, but my recommendation is not to invest in the stock of this company.

 

[5105973]

Agree completely. I find it quick and easy to use, but feel like a prat using it in London. I've never seen anyone else use it, and the assistants tend to roll their eyes!

Here in my part of the U.S., the sales clerks and cashiers don't seem to care how you pay, just as long as you do. If they were to roll their eyes at a customer for paying, most customers here would give them a hard time of it. I know I would, and I'm usually pretty quiet and unassuming. Also, a lot of places now have self-checkouts, bypassing a human clerk entirely. There will be just one person overseeing a group of self-checkout stations. You find these in groceries and home improvement stores mostly.

 

[KdParker]

Doesnt matter.

Discounts, coupons or incentives aren't going to convince me to give up my banking account, and personal information to a consortium that is ripped to be hacked.

Even if I felt they could keep information secure, I still don't see how this would benefit the consumer.

 

[mck.sw]

If they really are capping total credit card fees at .3% (vs. .2% for debit cards), that means credit card companies will lose big time on prompt payers. Credit card companies provide a short term loan (the time between the transaction and the monthly bill) as well as incur some elements of risk-- that the card user won't pay, or that the charge will be fraudulent. Assuming the "loan" is for 15 days on average, and that .2% covers just the handling costs (as with debit cards), the remaining .1% results in an effective annual interest rate capped at about 2.4%. That's pretty ridiculous, especially as it's statutory and can't rise with inflation. Expect a huge cutback in credit card reward points, free fraud protection, and any other benefits you get from using a credit card. Sorry, UK.

They are capping the interchange fee, not the total credit card fee. Although this currently represents the largest element of the total. Expect the other elements to mysteriously increase!

 

[BuffaloTF]

They should instead make this a pre-paid/gift card payment system. Consolidate the back end for these merchants, save costs there. Those of us that use Passbook apps do this very thing today. I pay Dunkin Donuts with a barcode every day. It's just linked to my gift card I keep loaded up rather than generating an ACH against my bank account. Big difference, more palatable.

 

[Gasu E.]

Still I never got why Amex asks double the fee that Visa and MasterCard charge. It is a surefire way of pricing yourself out of the market. Many businesses in Europe refuse Amex because of it and they lose a lot of business. They must have done their own calculations on this, but somehow I'm surprised that the income from the higher fee can compensate for the loss of business of that same fee rate.

Last statistic I could find (2013) is that 26% of all money transacted through credit cards was on Amex. Here, Amex is accepted by every decent-sized retailer.

 

[Gasu E.]

They are capping the interchange fee, not the total credit card fee. Although this currently represents the largest element of the total. Expect the other elements to mysteriously increase!

Interesting, thanks.

 

[Arran]

Here in my part of the U.S., the sales clerks and cashiers don't seem to care how you pay, just as long as you do. If they were to roll their eyes at a customer for paying, most customers here would give them a hard time of it. I know I would, and I'm usually pretty quiet and unassuming. Also, a lot of places now have self-checkouts, bypassing a human clerk entirely. There will be just one person overseeing a group of self-checkout stations. You find these in groceries and home improvement stores mostly.

Invariably the cashiers here ask me how I like the watch. Overall very positive reactions.

The self service vending machines just flash their little lights and give me what I want

 

[avanpelt]

This, ladies and gentlemen, is a classic example of trying to stop the hemorrhaging. RiteAid announces yesterday that they're going to start accepting NFC payments this Saturday so MCX starts shouting from the rooftops hoping that someone will hear them and pick up the story -- "We've got a bunch of retailers who are going to start testing our technology!"

Edit: I didn't even realize that the testing is limited to a single market -- Columbus, OH. If they attempt to roll this thing out after only testing it in one market, the MCX execs are even dumber than I thought.

Right now, they're trying to play "beat the clock" to get something to market as quickly as possible because they know they have to roll something out to prove to their investors (the companies who are part of the MCX) that the product is viable. I don't know about you all, but I don't want to hand over my personal information to a company whose financial product has been hastily tested and shoved out the door.

 

[peterdevries]

Last statistic I could find (2013) is that 26% of all money transacted through credit cards was on Amex. Here, Amex is accepted by every decent-sized retailer.

I wonder what those statistics are for the rest of the planet, as I always get dirty faces when I try to pay with my corporate card. It sucks that my employer (A UK company) pushes the least accepted card (well maybe with the exception of Diner's Card) on us, making us front much of our business expenses ourselves.

 

[macnewbie91]

I would prefer just getting some Chip and PIN readers/cards here in the US.

They're all over the place. The problem is a lot of stores haven't activated the chip reader yet. Even KMart has readers that are capable of taking chip cards, but they won't turn them on. I know Walmart allows payment with EMV cards in the chip slot. I think Home Depot was another one that has been mentioned before but I haven't tried to use my card there in a long time. I think someone should post a list of stores that currently accept EMV payment with their reader actually ON.

I've seen the chip capable Verifone readers at stores like Byrne Dairy, Victoria's Secret, Aeropistale, American Eagle, Walmart, AT&T, Hess/Speedway, and other places.

What is it with KMart now anyways? Seems like the stores are poorly maintained and built for scumbags to shop there.

 

[phpmaven]

Still I never got why Amex asks double the fee that Visa and MasterCard charge. It is a surefire way of pricing yourself out of the market. Many businesses in Europe refuse Amex because of it and they lose a lot of business. They must have done their own calculations on this, but somehow I'm surprised that the income from the higher fee can compensate for the loss of business of that same fee rate.

Well... It's not quite double the fee. I've been an online retailer for many years and I've gone back and forth on talking Amex a few times. The bottom line is that it's pretty well known and provable (I've done it myself with my own sales numbers) that you get higher dollar orders from people who use Amex. The difference in fees is offset by the increase in average order price. As a consumer, Amex is fantastic to work with and offer a much higher class and quality of service than Visa/MasterCard Banks and institutions.

 

[Steve.P.JobsFan]

I'm actually leaving for Columbus in about fifteen minutes for some business stuff this afternoon. Maybe I'll test CurrentC.

Just kidding! The last thing I would want to do is give a cloud service that has already been hacked my direct checking account and bank routing numbers so retailers can save a few bucks on VISA and MasterCard's fees... CurrentC is going to flop on its face and I can't wait to see that day.

 

[Eidorian]

They're all over the place. The problem is a lot of stores haven't activated the chip reader yet. Even KMart has readers that are capable of taking chip cards, but they won't turn them on. I know Walmart allows payment with EMV cards in the chip slot. I think Home Depot was another one that has been mentioned before but I haven't tried to use my card there in a long time. I think someone should post a list of stores that currently accept EMV payment with their reader actually ON.

I've seen the chip capable Verifone readers at stores like Byrne Dairy, Victoria's Secret, Aeropistale, American Eagle, Walmart, AT&T, Hess/Speedway, and other places.

What is it with KMart now anyways? Seems like the stores are poorly maintained and built for scumbags to shop there.

I think I have come to the realization that I rarely do shopping in person anymore. KMart does occupy this strange zone where I get cashback discounts while shopping there on my debit card but after visiting different ones in town they all appear very run down.

 

[Sasparilla]

I'm in the U.S. I have a chip credit card that I have used at Target. No pin required yet. Just place the card, chip side first, in the card reader and wait for it to processes.

Its good to point out the current Chip Cards / Readers at Target would not have prevented the harvesting of credit card data that went on there (last year?) as the bad guys owned the readers as well. BTW, the PIN part is the thing that provides (some) security on a CHIP and PIN card...how the banks think its a good idea not to use that is hard to fathom after the last couple of years of stolen customer card data.

 

[macduke]

Hy-Vee is on board with this BS? That's really unfortunate and surprising as they're one of the best grocery stores I have ever used. I used to work for them when I was a teenager and despite having a few crappy shift managers (what place doesn't), I generally felt like they had a passion for great customer service. The stores are always clean. Prices aren't always the best but they have some good sales from time to time. I'd rather pay slightly more at Hy-Vee than shop at Wal-Mart. I was mildly annoyed that they don't accept Apple Pay, but now I'm pissed that they would be so flippant with my personal information.

My message to Hy-Vee is thus: Great customer service includes everything from top to bottom, including the checkout process and the peace of mind that comes with knowing that your financial information is in good hands. CurrentC is not easy to use. It is inherently insecure given the detailed personal information that it collects. There are no device-specific tokens that can be revoked, no biometric tokens anywhere to be found. This solution should be abandoned as soon as possible. Especially considering that your target market is mid to high-end grocery shoppers.

I encourage those who shop at Hy-Vee to leave feedback here (and those who shop at other stores to leave feedback on their respective sites as well). I couldn't find any other way to contact besides feedback about a store, so just put in your local store information: https://www.hy-vee.com/company/contact/

 

[c1phers]

I would prefer just getting some Chip and PIN readers/cards here in the US.

There are chip readers already, my new Amex is a chip card, I tried to swipe it at Target and the POS terminal barked at me. The register person said, oh you have a chip card, you need to push it into the slot and follow the directions. It's coming, albeit slowly, now just need the PIN part.


I still prefer Apple Pay, touch my watch and I'm done.

 

[macnewbie91]

Still I never got why Amex asks double the fee that Visa and MasterCard charge. It is a surefire way of pricing yourself out of the market. Many businesses in Europe refuse Amex because of it and they lose a lot of business. They must have done their own calculations on this, but somehow I'm surprised that the income from the higher fee can compensate for the loss of business of that same fee rate.

Seeing as AMEX receives more benefits from interchanges fees (due to most of their customers having a higher income and spending more, while also including the higher % they take from merchants), while also charging an annual fee on top of it (for most of their cards), I'm sure AMEX has plenty of money saved up in their safe. Your argument is like asking how Apple survives despite charging a premium and having a lower market share.

"Uh, why? I have to use these at Target now. They're much harder to use than the old swipe mechanism. They just make me extra annoyed that I can't use Apple Pay."

#1 Because it protects you more.
#2 It protects the merchant against new credit card regulations staring in October.
#3 Because it's not technology that's 20 years outdated.

I can't believe someone has to tell you this - it should just be common sense to you if you post on here.

 

[Popeye206]

After three months and 10 transactions done via CurrentC, I think they will finally toss in the towel and realize they are too little too late.

 

[JeffyTheQuik]

Hello! Welcome to Sears! We're the USA's largest retailer with stores at malls all over the USA, and we started in 1888! We don't take Visa/MC, but we do take the Sears Card and Discover, which benefits us!
- 1992
Hello! Welcome to Sears, a subsidiary of the K-Mart Company. We now take Visa/MC.
- 2005

Hello! Welcome to Walmart! We're the world's largest retailer with stores all over the world, and we started in 1962! We don't take Apple Pay or Google Payments, but we do take CurrentC, which benefits us!
- 2015

 

[dukeblue219]

Its good to point out the current Chip Cards / Readers at Target would not have prevented the harvesting of credit card data that went on there (last year?) as the bad guys owned the readers as well. BTW, the PIN part is the thing that provides (some) security on a CHIP and PIN card...how the banks think its a good idea not to use that is hard to fathom after the last couple of years of stolen customer card data.

I thought the chip still provided a one-off code that made it effectively non-cloneable. Even if you had access to the reader, can you steal a chip-and-signature card? I mean, even if it was PIN as you say, someone with access to a compromised reader could get the PIN easily.

 

[dannyyankou]

Update 7:10 AM​

: MCX CEO Brian Mooney​

tells Re/code​

that CurrentC may not see a broad launch until 2016, depending on how the early testing in Ohio proceeds.​

Wait, wasn't it supposed to launch in 2015?

I've been testing CurrentC and it's truly awful compared to Apple Pay.